I
annual report 2014
Notes to the Financial Statements
31 December 2014 (Cont’d)
96
25. FINANCIAL INSTRUMENTS (cont’d)
(a)
Capital management (Cont’d)
The Group monitors capital by reference to its indebtedness position. The strategy of the Group is to maintain
the balance between debt and equity and to ensure sufficient operating cash flows to repay its liabilities as
and when they fall due. As at the end of the reporting period, the gearing ratio of the Group (which is financial
debts divided by total equity plus financial debts) is calculated as follows:
Group
Company
2014
2013
2014
2013
RMB’000
RMB’000
RMB’000
RMB’000
Borrowings
10,000
10,000
–
–
Trade and other payables
84,650
127,520
1,689
2,602
Total liabilities
94,650
137,520
1,689
2,602
Less: Cash and bank balances
(517,914)
(289,873)
(818)
(998)
Net (cash)/debt
(423,264)
(152,353)
871
1,604
Total capital
1,184,859
982,227
780,000
669,518
Net (cash)/debt
(423,264)
(152,353)
871
1,604
Equity
761,595
829,874
780,871
671,122
Gearing ratio
*
*
0.1%
0.2%
*
Gearing ratio is not presented as the Group is in net cash position as at 31 December 2014 and 31
December 2013.
Pursuant to the requirements of Practice Note No. 17/2005 of the Bursa Malaysia Securities, the Group is
required to maintain a consolidated shareholders’ equity equal to or not less than the twenty-five percent
(25%) of the issued and paid-up capital (excluding treasury shares) and such shareholders’ equity is not less
than RM40.0 million (RMB74.0 million). The Company has complied with this requirement for the financial year
ended 31 December 2014.
The Group is not subject to any other externally imposed capital requirements.
(b)
Categories of financial instruments
Group
Financial assets
2014
2013
RMB’000
RMB’000
Loans and receivables
Trade and other receivables
138,514
207,164
Cash and bank balances
517,914
289,873
656,428
497,037
Financial liabilities
2014
2013
RMB’000
RMB’000
Other financial liabilities
Trade and other payables
84,650
127,520
Borrowings
10,000
10,000
94,650
137,520
